Sensitivity analysis of spatial price equilibrium: An application to the European Community’s feed grain market

Despite the fact that the theory of spatially separated markets is well known, relatively little effort has been directed toward measuring the sensitivity of spatial price equilibria. The purpose of this paper is to apply sensitivity analysis with a previusly established spatial price equilibrium model of the European Community’s feed grain markets, which was formulated as a self-dual quadratic programming model. The performance of the reduced-form coefficients will be evaluated within the context of policy analysis.